Tesla Stock Price Drops Following Third-Quarter Loss
The company delivered 5,500 vehicles this quarter, exceeding its expectations of 5,000, but still it reported a loss of $0.32 per share, based on Generally Accepted Accounting Principles (GAAP). This performance is worse than the $0.25 per share loss that was expected.
The Q3 results now point out that the company is making 550 vehicles a week, and is on target to deliver 6,000 vehicles in the fourth quarter. Overall the company reported that its non-GAAP gross margins increased by 22 percent, or 24 percent on a GAAP basis.
With a GAAP revenue of $431 million Tesla again performed below analyst expectations, who were looking for revenue of more than $554 million. Overall, the company posted a $38 million dollar loss.
SEE ALSO: Tesla Model X Will Come AWD Only
With the fourth quarter ahead of them, Tesla hopes to close out the year with 21,500 vehicles delivered worldwide for all of 2013. The company is hoping to increase the gross margins on the Model S to 25 percent, with a focus on selling the car with more options. With the Model S now available in North America and Europe, Tesla is pursuing China next with deliveries to start in the first quarter of 2014.
With the new Model X crossover slated to hit the market next year,Tesla also announced that it will increase R&D spending by about 25 percent to accelerate the company’s production efforts.
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Sami has an unquenchable thirst for car knowledge and has been at AutoGuide for the past six years. He has a degree in journalism and media studies from the University of Guelph-Humber in Toronto and has won multiple journalism awards from the Automotive Journalist Association of Canada. Sami is also on the jury for the World Car Awards.
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